6 Units Closed in Wilshire Vista
We recently represented a Seller of 1264 S. Spaulding. Los Angeles, CA 90019, a 6-unit property located in the coveted Wilshire Vista neighborhood of Los Angeles, which is East of Fairfax, North of Pico Boulevard, around San Vicente Boulevard. I like the Wilshire Vista area for many reasons. At the forefront of those reasons is the overall aesthetic and charm of the surrounding neighborhood. The tree-lined streets in the immediate vicinity (Orange Grove Ave, Genesee, Ogden, Stanley etc) are very single-family residential (SFR) in nature. This area is not densely populated with apartments, so if you own a multifamily building in this area, there is not a lot of competition in the neighborhood when it comes time to lease units.
The unit mix of 1264 S. Spaulding consisted of all one-bedroom floor plans averaging close to 1,000 SF per unit – each unit with a dining room which is a characteristic indicative of 1930s construction, which is when this particular property was built. The Buyer, who is a local family office with close to 1,000 units under management, plans to potentially convert these one-bedroom units into two-bedroom units – the thought process being that a one-bedroom unit in this area could fetch about $2,000/month whereas a two-bedroom unit could fetch closer to $2,700 – $3,000. This small incremental difference in monthly (and annual) rent ends up amounting to major dollars when it comes time for the property to be valued for either a sale or a refinance. In addition to these conversions, the Buyer plans to construct and Accessory Dwelling Unit (ADU) in the parking garage thereby creating an additional unit and income for the property.
While in fairly good condition, this property was un-renovated and lacked most of the features that today’s renter is looking for. The Buyer was attracted to the quality of the neighborhood and the fact that the building was delivered with 3 vacancies allowing them to go to work immediately on renovating those units without having to deal with existing tenancies.
The Seller was a long-term owner/operator who like many property owners was fatigued by anti-landlord legislation in California and Los Angeles and figured it was time to move on, a story that I hear quite frequently in the LA multifamily market.
Transaction Details:
- $2,000,000 Sale Price
- 6 Units
- 5,794 SF
- $333,333/Unit
- $345/SF
View additional photos of 1264 S. Spaulding below:
